Role Of Government Policies In Shaping Vegetable Marketing Practices: Evidence FromRajasthan

Abstract

This study examines the impact of government policies on vegetable marketing practices in the Indian state of Rajasthan. Using primary data collected from surveys of 500 farmers, 100 wholesalers, and 50 retailers across five districts of Rajasthan, as well as secondary data fromgovernment reports and academic literature, the paper analyzes how various national and state-level agricultural policies have influenced the structure and functioning of vegetable value chains in the region. Key policies considered include the Agricultural Produce Market Committee (APMC) Act, contract farming laws, minimum support prices (MSP), and agricultural subsidies. The results show that the APMC Act has led to the development of a network of regulated wholesale markets which serve as the main marketing channel for vegetables, but its provisions restricting sales outside these markets have hindered direct linkages between producers and buyers. Recent reforms aimed at allowing private markets and removing barriers to interstate trade have had limited impact so far. Contract farming remains underdeveloped due to regulatory uncertainty and lack of trust between stakeholders. MSP haslittle relevance for most vegetable crops given their perishability and lack of public procurement. Input subsidies, while increasing yields, have exacerbated problems of overuse of chemicals and declining water tables. The paper argues for a more holistic, nutrition-sensitive approach to agricultural policy that goes beyond a narrow focus on boosting production and marketable surplus. Specific recommendations include investments in storage and cold-chain infrastructure, expansion of crop insurance coverage, promotion of Farmer Producer Organizations and shorter supply chains, and greater emphasis on sustainable production practices and nutrition education. Enhancing smallholder access to credit, information, and input-output markets remains critical